GDP growth continues on strong pace per 3Q 2018 Economic Outlook Update

BVWireIssue #194-3
November 28, 2018

economic data for valuations
economic forecast, industry analysis, valuation report

The U.S. economy—as indicated by GDP—grew at an annual rate of 3.5% in the third quarter of 2018, putting it on pace to have the largest annual average GDP figure in over a decade, according to the 3Q 2018 Economic Outlook Update (EOU). The third-quarter increase is slower than the upwardly revised rate of 4.2% reported for the second quarter of 2018. Still, the 3.5% rate marked the second highest quarterly GDP rate in four years. Other highlights:

  • The employment cost index increased 0.8% in the third quarter of 2018;
  • The U.S. economy recorded the 113th consecutive month of growth by the end of the third quarter;
  • The FOMC raised the target range for the federal funds rate to between 2.00% and 2.25%;
  • Pending-home sales were at 104.6% in the third quarter and are down 1.0% from one year ago; and
  • Construction spending was at an annual rate of $1,329.5 billion in September, an increase of 7.2% from one year ago.

You get permission to quote any or all of the material in the EOU in your valuation reports as long as you give proper attribution. The EOU is published monthly and quarterly.

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